The Hindu Business Line : Rlys now offers e-payment facility to freight users too

INDIAN Railways is opting for e-commerce applications in a big way. Having successfully launched payment and booking over Internet services in the passenger segment, the Railways will now focus on implementing the same in its freight business segment, which accounts for the majority of the organisation's earnings.

"Implementing e-payment scheme for the freight users was proving to be difficult since the amount for online transactions involved were of the order of several crores," The Managing Director of Centre for Railway Information System (CRIS), Mr M.R. Ramakrishnan, told Business Line when asked what took so long for Railways to launch online payment option in the freight operations.

However, in freight segment, this option is now catching up with customers. The Railways would soon have two freight users opting for its electronic payment scheme - the Rajasthan-based Surendranagar Power House and Food Corporation of India (FCI). Quite a few cement companies have also evinced interest in opting for the e-payment scheme, added Mr Ramakrishnan.

On an average, while Surendranagar Power House pays around Rs 30-40 crore every month, FCI pays up about Rs 100 crore per month to the Railways.

Through the e-payment scheme, Railways' customers can save time, labour costs and effort involved in making payments. "At present, many customers employ agencies to carry out their payment transactions with the Railways. Customers have two options - either they deposit funds in advance at the point of origin with Railways anticipating their monthly usage, or they pay a 15 per cent premium over the normal freight charges if they pay after usage," explained Mr Ramakrishnan. For the large usage customers of Railways, this process is cumbersome.

Another benefit to customers would be that they could end up making their payments in specified, select areas. In the present system, if a powerhouse is sourcing its raw material from about 20 locations, it is required to make arrangements for payment at those many destinations.

Both FCI and Surendranagar Power House are in talks with State Bank of India and CRIS to have a link with Indian Railways through which they can pay up their usage charges, he added.

"We expect the system to be operational over the next two-three months," Mr Ramakrishnan said.

CRIS has created the software that links the customers' account with banks and Railways' Freight Operations Information System (FOIS). The FOIS has networked the entire freight movement in the country. It enables both the consigner and consignee to monitor the movement of their freight.

Moreover, it helps the Railways manage and control freight movement, thus improving asset utilisation.

Customers interested in having an online payment arrangement are required to first tie up with a bank and approach the Railways.

In January 2005, the Railways kicked off its e-payment system for freight users with Badarpur Thermal Power Station, in collaboration with SBI. "On an average Rs 40 crore per month of payment from Badarpur Power station is received by Railways," he added.

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Rlys now offers e-payment facility to freight users too